Exhibit 6A-1 Budget Line

question 106

Multiple Choice

Exhibit 6A-1 Budget line
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-​As shown in Exhibit 6A-1, a leftward shift in the budget line from CD to AB would result from:

• A) ​a price reduction in good X.
• B) ​a price reduction in good Y.
• C) ​a decrease in consumer income.
• D) ​an increase in consumer income.

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Definitions:

Withdrawal

The act of taking money out of a bank account, or the removal of assets from a business by the owner for personal use.

Partnership Assets

Assets that are owned by a partnership and are used in the business's operations, typically including things like cash, property, and equipment.

Income Ratios

Metrics that evaluate a company's ability to generate earnings relative to its revenue, equity, assets, or other financial metrics.

Liquidation

The process of closing a business and distributing its assets to claimants.